This is a special week â because itâs all about YOU.
Itâs National Small Business Week, and Iâve got to take a minute to say it: Running your USA (Nation-Wide) business is no small thing. Youâre the one wearing every hat from CEO to janitor, doing a thousand unseen things a day. All because you had a vision, and you refused to let it stay on the shelf.
Thatâs worth celebrating. So, from the Chaumont CPA Firm LLC team to you, well done.
Now, if youâre looking to build up and out this year, thereâs something I wanted to bring to your attention: The Small Business Administration is rolling back some of the more flexible borrower requirements that were introduced during the Biden administration for the 7(a) loan program.
Translation: Starting June 1, itâs going to be harder to qualify for SBA loans â and pricier, too, with lender fees coming back into the picture.
So, if you were planning on that SBA loan to float your business through a lean patch or kickstart a new project, it would be wise to look at all your options here. An SBA loan isnât the only way to inject cash into your business.
Sometimes the next step isnât more debt, but rather, looking closer at your budget: rethinking whatâs urgent and whatâs just noise.
Maybe thatâs renegotiating vendor contracts, revisiting your pricing structure, or finding creative financing alternatives. Thereâs almost always more than one path forward â you just need to know where to look. And Iâm here to help you find it: calendly.com/allison-chaumont/chat
Today, I want to zoom out a little and focus on a business operations topic: travel. More specifically, your SOP/policy on business travels. If you donât already have a written travel policy, itâs time to fix thatâŠ
Why Your USA (Nation-Wide) Business Needs a Travel Policy
âExperience, travel â these are as education in themselves.â â Euripides
If you and your team travel for business at all, a solid travel policy isnât just helpful. Itâs something you need to have.
Because when you put clear boundaries around things like flights, hotels, meals, and transportation, youâre protecting your bottom line. Unchecked, travel spending can spiral fast (going out for cocktails here, a spontaneous jet ski excursion there).
And on top of good financial sense, this is also your legal duty. When your people travel for business, youâre responsible for their safety. Plus, a clear travel policy makes it way simpler to document expenses for IRS purposes (AKA â travel deductions).
So, how do you actually write one of these policies?
Step 1: Outline travel booking guidelines. First, require that all bookings either go through a designated travel coordinator, your companyâs travel platform, or through approved booking portals youâve vetted (like Concur, Egencia, or negotiated corporate portals for airlines/hotels).
If you do let employees book on their own, build in a minimum window â 14 to 21 days in advance â to show you made a good-faith effort to spend wisely.
As far as fare classes go, spell it out: economy or business class, depending on flight length (6+ hours might justify a comfort upgrade, but not a lie-flat seat with a massage button). If someone wants an upgrade beyond whatâs allowed, they should pay the difference personally unless itâs pre-approved.
Same with hotels and ground transportation: set clear standards (e.g., standard rooms only, business-class hotels, company cars, ride shares, or standard rental cars).
Clarify under what circumstances other arrangements are allowed (AKA, legitimate business purposes or last-minute emergencies), and require your employees to document WHY they went off script.
Step 2: Set up emergency precautions. Youâll want to specifyâŠ
- Who to contact in the company in case of an emergency (including after-hours numbers).
- How to find local emergency numbers in the destination country or city.
- What travel insurance coverage is provided (medical evacuation, trip interruption, lost luggage), and how to access those benefits while traveling.
- Where to seek urgent medical care abroad, including whether pre-approval is needed for certain providers or services.
- Steps to follow if thereâs a natural disaster, political unrest, or other major event requiring evacuation.
- Spending limits and reimbursement for unexpected lodging, transportation, or other emergency expenses.
- If employees are required to carry copies of passports, visas, insurance cards, or emergency contacts, both digitally and physically.
Step 3: Outline allowable expenses. Your policy should list out allowable expenses, which include airfare, lodging, meals, ground transportation, parking, baggage fees, work-related internet access, and business phone calls.
And make sure your employees get it loud and clear: Personal expenses are not reimbursable when traveling for business.
Souvenirs, tourist attractions, personal side trips, and the like have to come out of their own pockets (even if they talk business with clients during the outing). If they want to add on a few personal days â say, staying the weekend after a Friday meeting â they can, but youâll need a breakdown of which expenses were business-related and which were not.
If an expense is business and personal, youâll need a documented business-use percentage.
Step 4: Detail per diem rates. A per diem policy simplifies reimbursement. Instead of you having to sort through a mountain of receipts, your employees get a fixed daily amount to cover meals and incidental expenses (think tips, small transport charges, etc.). The IRS sets these rates, and they vary by location.
If you use per diems, your travel policy should specify:
- Which rate schedule you follow (General Services Administration (GSA) rates for U.S. travel, State Department rates for international).
- Rates for travel days â most companies allow 75 percent of the full per diem rate on the first and last day of the trip.
- Employees are required to deduct meals provided by the conference, hotel, or airline.
- Whether employees have to stick to per diem if offered, or if they can choose to be reimbursed with receipts instead.
Step 5: Include expense reporting requirements. Your policy should require that all expenses be submitted within a set period after the trip ends (usually 10-30 days), with itemized receipts attached. And require that employees return any excess reimbursements within a reasonable period, typically 120 days.
ALL expenses need to have business purpose notes â describing the who, what, where, and why.
Your travel policy is just one (albeit crucial) element involved in smoother business operations. Getting this in place so you are more focused and diligent with your business expenses is going to keep you from overspending in the moment.
If you want help writing a travel policy â so you can have full confidence youâre not missing out on any savings opportunities for your USA (Nation-WIde) business, letâs talk:
calendly.com/allison-chaumont/chat
Safe travels,
Allison Chaumont